Xiaomi SU7 $5k Below Planned, Lei Jun: Price War Intense. Which Model to Get?

Xiaomi SU7: Unveiling of the Latest Model and Pricing Details

Xiaomi SU7 was recently unveiled, and the suspense over its pricing has been resolved. The standard version of Xiaomi SU7 is priced at 215,900 RMB, the SU7 Pro at 245,900 RMB, and the SU7 Max at 299,900 RMB. Xiaomi has been emphasizing that the prices this time may seem a bit high, mainly due to the genuinely high costs incurred, especially with the battery prices escalating. Even Meizu’s former senior executive, Li Nan, went to the extent of mentioning that Xiaomi SU7 may not be able to engage in a price war.

The pricing strategy of Xiaomi SU7 seems to have elements of starting low and then gradually increasing. Given that Xiaomi and Lei Jun are indeed leaders in internet marketing, the most attractive version, Xiaomi SU7 Max, is priced at 299,900 RMB. For those who placed orders by April 30, they would receive complimentary refrigerators, sofas, and large speakers, which could be considered as a favorable deal.

Lei Jun’s approach to pricing confirms the speculation that the prices won’t be low. Originally, the top-end model was planned to be priced at 350,000 RMB. However, due to the competitive pricing from other automotive companies, Lei Jun expressed his commitment to offering sincere pricing. The standard version is priced 30,000 RMB lower than Model 3, while the Max version is fixed at 299,000 RMB.

Xiaomi SU7

Lei Jun revealed that the top-end version of Xiaomi SU7 was initially priced at 350,000 RMB. This aligns with the earlier prediction of Li Nan, the former Meizu executive, who mentioned on March 13 that the pricing would be quite competitive. Considering the various market dynamics, only an appropriate price could secure success. Lei Jun asserted that there was no need to spend overnight convincing executives; it took just an hour to finalize the pricing.

The pricing is reasonable, and the specifications are impressive. It strikes a balance – not too high to deter sales, as production capacity needs to be considered. The company wouldn’t want to face delivery challenges due to overwhelming demand. Initially, the production capacity in March was 3,000 units, but it has ramped up later on. With a capacity of 6,000 to 8,000 units per month, delivery delays should be avoided. Excessive sales could pose challenges, but as component costs decrease over time, managing sales would become easier.

Xiaomi SU7

Upon its launch, Xiaomi SU7 received overwhelming response, with 50,000 units being reserved within just 27 minutes. The reservation policy allowed a 7-day return option, except for the Founder’s Edition. While there might be tweaks in the policy later on, this initial response was undoubtedly impressive.

Xiaomi SU7

Among the three models, the top-end version stands out as the most appealing. The Xiaomi SU7 Max edition features dual motors, four-wheel drive, a high-voltage platform of 871V, large capacity battery, and advanced intelligent chips, surpassing both the standard and Pro versions in terms of performance and configuration. Currently, many customers seem inclined towards purchasing the Xiaomi SU7 Max edition, indicating a possibility of it outselling the standard version.

Xiaomi SU7

While some critics view the pricing as aggressive, others believe it to be strategic. The question remains whether Lei Jun’s strategy will be profitable. The initial costs were indeed high, especially with the battery and other components procured at elevated prices. However, as costs decrease over time and positive reviews help build reputation, profitability is expected to follow with increased sales. Therefore, the user experience resulting from these initial reservations will be crucial for future profits.

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